Cramer says “Easter rally” could mean an increase in these retail stocks

Jim Cramer of CNBC on Tuesday dismantled a seasonal retail trading model that investors believe investors should be aware of.

The host of “Crazy Money” analyzed the stock analysis from the well-known technician Larry Williams, who took into account past transactions to determine in which direction the stocks of Costco, Amazon, Walmart and Shopify could move in the first days of spring.

“If history is a guide, Williams bets that a rising tide in April will be able to lift all retail ships,” Cramer said.

Each of the stocks is down compared to the year, except for Shopify, which trades 2% more. Costco has fallen 10% this year, after rising 28% in 2020.

These retail-oriented stocks are able to rise higher, Williams says, albeit in the short term. Cramer called it an “Easter rally,” naming it less than two weeks after the holiday.

“I think the movement may have already begun,” he said.

Turning to Williams’ graphic analysis, Cramer noted how the retail group tends to gather in the days before or after the Easter break. However, he stopped recommending how market participants could trade the moment and make a profit.

“If you’re worried about the rotation, we recommend that you use the rally at key retailers to call the registry,” Cramer said. “As much as I like these companies in the long run and I don’t want to trade them, I can’t blame anyone for making a profit.”

Disclosure: The Cramer Charitable Trust owns shares in Walmart, Costco and Amazon.

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